12 Aug 2022

The three major U.S. stock indexes were mixed overnight. As of the close, the Dow rose 0.08%, the Nasdaq fell 0.58%, and the S&P fell 0.07%. The yield on the 10-year U.S. Treasury bond rose 3.9% to close at 2.889, about -34 basis points over the yield on the two-year Treasury note. The VIX, the fear index, closed up 0.47%. Brent crude closed up 2.01%. Spot gold closed down 0.12% at $1,789.92 an ounce. The dollar index remained high, closing at 105.2.

The monthly rate of PPI in the United States recorded -0.5% in July, lower than the expected 0.20%, and the previous value was 1.10%. Core PPI rose 0.2% m/m, below expectations of 0.40%. Institutional analysis said the data largely reflected the decline in energy costs and indicated a welcome easing of inflationary pressures. Excluding the more volatile food and energy components, core PPI rose 0.2% from June and 7.6% from a year earlier. Both numbers were lower than expected. The three major stock indexes opened higher.

The number of U.S. jobless claims rose again, near the highest level since November last year, and the number of U.S. jobless claims rose for a second week in a row, near the highest level since November last year, indicating a continued slowdown in the labor market. Initial jobless claims have been rising as more companies, especially in the tech sector, have announced layoffs and hiring freezes amid economic uncertainty. Demand for labor may fall as the Federal Reserve raises interest rates, but so far employers have largely struggled to keep existing workers amid widespread labor shortages.

In terms of energy, European natural gas prices hit a record high for five consecutive months. When the risk of gas supply in winter increased, European natural gas continued to refresh the high since March. British natural gas futures closed up 3.03% at 401.65 pence/kcal, rising for three consecutive days. It closed at a new high since March 8 for two consecutive days, and closed above 400 pence for the first time since March 8; the TTF benchmark Dutch natural gas futures, which rose nearly 7% on Wednesday, closed up 1.34% at 208.11 euros / MWh, a streak of gains The two days also continued to hit a new high since March 8, and the German electricity price continued to hit a record high. International crude prices accelerated, extending intraday gains to more than 2% after the International Energy Agency (IEA) raised its forecast for oil demand growth this year due to high summer temperatures in Europe and tight natural gas supplies. The three major stock indexes closed mixed.

Apple fell 0.44%, and the average price of the iPhone 14 series will increase by 15% compared to the 13 series.

Google fell 0.72%, with a maximum penalty of 2% of annual revenue South Korea plans to investigate Apple and Google app payments.

Amazon fell 1.44%, Amazon began to promote palmprint payment on a large scale in California.

Tesla fell 2.62%. Tesla is advancing negotiations on the construction of a super factory in Canada. Musk said that the Tesla Semi will be listed this year.

Sources from: Investing.com; Reuters.com

Louis Yap

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